Why is it necessary to distinguish between current and accumulated E and P??

Distributions are deemed to come first out of current? E&P and then out of accumulated? E&P, so if current? E&P is? positive, any distributions will be dividends to the extent of current? E&P. However if? E&P is insufficient to cover all? distributions, distributions are deemed to come pro rata out of current? E&P and then in chronological order out of accumulated? E&P.

Distributions are deemed to come first out of accumulated? E&P and then out of current? E&P, so if accumulated? E&P does not cover the full? distribution, the remaining is taken from current? E&P. However, if current? E&P is still insufficient to cover the remaining? distribution, the distributions are treated as a return of capital and reduce the? shareholder's stock basis.

Distributions are deemed to come first out of current? E&P and then out of accumulated? E&P. However if the distribution is for the sole intent of avoiding? tax, the distribution is disallowed and the full amount that would have been paid out is deemed a capital? gain, and required to be taxed at the corporate level.

Distributions can come out of accumulated? E&P or current? E&P first. The order does not? matter, but once a method has been? chosen, the corporation must stay with that method.? However, if the distribution exceeds the total? E&P, the remainder will be dividends.

Why is it necessary to distinguish between current and accumulated E and P??
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Why is it necessary to distinguish between current and accumulated E and P??
Distributions are deemed to come first out of cur

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